Key Highlights
- The U.S. Treasury sanctioned Iranian crypto exchange BitBank, its software developer, and three individuals linked to Babak Zanjani.
- Treasury alleges BitBank processed hundreds of millions of dollars in Iran-linked payments and transferred funds to the IRGC.
- The department said the exchange handled payments linked to maritime services around the Strait of Hormuz.
The U.S. Treasury Department has sanctioned Iranian cryptocurrency exchange BitBank, alleging that the platform was used to process payments connected to Iran’s financial networks and the Islamic Revolutionary Guard Corps (IRGC).
The Office of Foreign Assets Control (OFAC) announced the designations on September 17, targeting BitBank, its software developer Pishtaz Simorgh Electronic Trade Company, and three individuals Treasury linked to Iranian financier Babak Zanjani.
Treasury alleges that BitBank processed hundreds of millions of dollars in Iran-linked payments and transferred funds to the IRGC. The allegations have not been adjudicated in court.
Treasury links BitBank to Zanjani
According to the Treasury, BitBank has been connected to Zanjani since at least 2024. The department said Zanjani promoted the exchange and used it alongside other financial and digital asset businesses associated with his network.
OFAC also designated Pishtaz Simorgh, which Treasury identified as the developer of BitBank’s digital asset software.
The individuals designated alongside the companies are Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari. The Treasury identified them as having roles in Zanjani-linked businesses, including Dot One and Pishtaz Simorgh.
Treasury’s allegations also involve maritime activity around the Strait of Hormuz.
The department said BitBank was used to transfer funds associated with the Hormuz Safe Marine Services Authority, an Iranian entity previously designated by the United States.
Sanctions restrict transactions with designated parties
The designations were issued under Executive Order 13902, which provides sanctions authority over certain sectors of Iran’s economy, including its financial sector.
Property and interests in property belonging to the designated parties that are located in the United States or controlled by U.S. persons are blocked.
U.S. persons are generally prohibited from conducting transactions involving the designated parties unless authorized by OFAC or covered by an applicable exemption.
The restrictions can also create sanctions exposure for certain non-U.S. persons involved in transactions with designated parties or conduct intended to evade U.S. sanctions.
Earlier sanctions targeted Zanjani’s crypto network
The BitBank designation follows earlier U.S. actions against Zanjani and businesses associated with him.
In January 2026, OFAC designated Zanjani and the U.K.-registered crypto exchanges Zedcex Exchange and Zedxion Exchange, alleging that the businesses were involved in laundering funds linked to the IRGC.
In July, Treasury designated additional companies and individuals associated with Zanjani’s wider network, including businesses involved in financial services and digital asset trading across Iran and offshore jurisdictions.
The latest action therefore extends an existing sanctions campaign targeting businesses Treasury says are connected to Zanjani’s financial network.
Separate DOJ case targets $61 million in crypto
The Treasury action comes shortly after a separate Justice Department case involving cryptocurrency allegedly connected to Iranian oil sales.
On September 15, the U.S. Attorney’s Office for the Southern District of New York filed a civil forfeiture complaint seeking approximately $61 million in cryptocurrency. Prosecutors allege the funds represent proceeds from the sale of sanctioned Iranian crude oil and petroleum products.
According to the complaint, two Chinese companies allegedly used Binance trading accounts to launder more than $1.5 billion in Iranian oil proceeds. Some of those funds allegedly reached Iran-linked entities and IRGC-related addresses.
The case is separate from the BitBank sanctions and does not allege that BitBank participated in those transactions.
Crypto becomes part of sanctions enforcement
The BitBank designation reflects the growing use of cryptocurrency investigations in U.S. sanctions enforcement.
Treasury has previously targeted Iranian digital asset businesses, including Nobitex, over allegations involving sanctions evasion and transfers connected to Iran-linked entities.
Such cases can involve both traditional financial records and blockchain transaction data, allowing investigators to identify wallets, transfers, and relationships between digital asset businesses.
For BitBank, Pishtaz Simorgh and the three individuals designated on September 17, the sanctions now block property under U.S. jurisdiction and generally restrict transactions involving U.S. persons.
The Treasury allegations remain unproven in court. The separate DOJ forfeiture case will proceed through the civil court process.
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